Never miss a story from Christian Lewis

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Christian Lewis

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Talking Points:

  • USD extends drop as IMF reduces outlook for US economy in 2017, 2018
  • Trump administration policy uncertainty sighted for downgrade to outlook
  • IMF thinks Fed should continue on path of gradual raise of interest rates

See how retail traders are positioning in the Dollar-based majors, US indices,goldandoilintraday using the DailyFX speculative positioning dataon the sentiment page.

The US Dollar extended its decline through Tuesday’s session on news the International Monetary Fund (IMF) reduced its outlook for the United States’ economy because of policy uncertainty. The IMF cut its 2017 growth forecast to 2.1 percent from the 2.3 percent outlook offered in April, and cut the 2018 outlook to 2.1 percent from the previous 2.5 percent projection.

Plans to cut taxes and boost infrastructure spending have been a main focus for US President Donald Trump, and the execution of these plans highly anticipated by many. However, the IMF tempered its expectations that such economic and business friendly programs as regulations rollback, tax reform and a large infrastructure program, would readily clear legislative hurdles to be signed into law. That in turn, poses a concern for markets which have already moved to price such outcomes.

On a different tack, the IMF mentioned that it feels the gradual rate-hike path that the Federal Reserve has sustained is still appropriate, and recognized that US job growth has been persistently strong. It went on to call for the Fed to accept a modest, temporary inflation overshoot; and that it must continue to telegraph well laid out plans for the reduction of their balance sheet.

US Dollar Extends Drop As IMF Lowers US Economic Growth Forecast